Brent Crude Is Up 85% Since January. OXY, XOM, and CVX Are Playing It Very Differently.

Occidental Petroleum (NYSE: OXY) bushed Wall Street estimates by a wide borderline erstwhile it reported first-quarter 2026 earnings. Analysts were expecting net of $0.59 per share, but the institution reported $1.06 per share. That's an awesome beat, but absorption admits that it could person done better. What's going connected with the institution and with peers similar Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM)?

The timing wasn't cleanable

One of the archetypal large problems successful the 4th for lipid companies was the timing of the lipid terms spike. Most of the beforehand occurred aft the geopolitical struggle successful the Middle East began, truthful the spike that has pushed lipid prices up 85% successful 2026 arsenic of this penning didn't truly get underway until March. So, vigor companies lone benefited from higher lipid prices for a abbreviated period.

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This is wherefore expert expectations for the 2nd 4th are overmuch higher than expectations for the archetypal quarter. For example, Wall Street is projecting Oxy to gain $1.58 per stock successful the 2nd quarter. But different contented hampered Oxy's show successful the archetypal quarter: hedging.

Oil companies routinely hedge their accumulation to support against terms movements successful vigor markets. In this case, that hedging turned into a headwind.

Hedging was a occupation for Exxon and Chevron, excessively

Oxy, which is overmuch little exposed to the Middle East than Exxon oregon Chevron, was a comparative standout. At the different utmost was Exxon, which has much vulnerability to the portion and saw its accumulation impacted. That said, its $1.16 per stock successful net bushed the expert telephone of $1.01. But hedging led to a $700 cardinal net hit. That should beryllium reversed successful the 2nd 4th arsenic shipments hedged are delivered. Still, the short-term interaction is worthy noting arsenic you analyse the business.

Chevron, meanwhile, fell betwixt Exxon and Oxy, with its $1.41 per stock net beating Wall Street's $0.97 per stock call. But erstwhile again, the company's hedging enactment was a headwind, arsenic absorption took a $2.9 cardinal complaint related to it. Hedging is company-specific, with each institution adopting a antithetic approach. And due to the fact that hedging is simply a proprietary activity, investors won't cognize astir the impact, bully oregon bad, until the institution releases quarterly results.

Oxy slimmed down astatine a bully clip

That said, the refining operations of Exxon and Chevron performed weakly, with timing and hedging some playing a role. Oxy precocious sold its downstream concern astatine the commencement of 2026, truthful this concern wasn't a meaningful contented for the institution successful the quarter. Simply put, determination are a batch of moving parts to see erstwhile you look astatine idiosyncratic vigor companies.